Jadestone Energy commences production at Montara H6 development well

Jadestone stated the well delivered an initial rate, after clean-up, approaching 10,000 barrels per day and, following a period of well performance testing, will be stabilised at around 3,000 barrels per day, as per guidance.

The AIM-listed group added that the Valaris 107 rig had now made "the short move" to the Skua-10 and Skua-11 workover location, with operations on Skua-11 having already commenced.

Chief executive Paul Blakeley said: "The Montara H6 well is an important milestone in our investment strategy for the Montara assets, confirming our view of the Montara reservoir, and providing near-term growth. It not only delivers a significant increase in oil production but is also a key step in our plan to deliver circa 20,000 boe/d towards the end of this year.

"Higher production coincides with continued strength in oil prices, to which we are fully exposed given our unhedged position. As a result, our balance sheet continues to strengthen, providing the platform from which to execute on further growth through investment in both the existing portfolio as well as further M&A."

As of 1035 BST, Jadestone shares were up 5.65% at 88.75p.